American Water reported third‑quarter 2025 earnings with a quarterly earnings per share of $1.94 and a year‑to‑date EPS of $4.47. Net income for the quarter was $379 million, while operating revenues increased by $124 million, driven by authorized rate increases and infrastructure surcharges that added $275 million in annualized revenue requests.
The Regulated Businesses segment posted net income of $383 million, up from $356 million a year earlier, reflecting a recovery of capital and acquisition investments. Operating expenses rose by $63 million, primarily due to higher employee and technology costs, but the company’s capital investment and rate‑case strategy continue to support a robust earnings trajectory.
American Water reaffirmed its weather‑normalized 2025 EPS guidance at $5.70‑$5.75 and issued 2026 EPS guidance of $6.02‑$6.12, representing a 15% increase over 2025. The company reiterated its long‑term targets of 7‑9% compounded annual growth for both EPS and dividends. It plans to invest approximately $3.2 billion in its footprint in 2025, up from $2.2 billion in the first nine months, and maintains a $40‑$42 billion capital plan over the next decade.
The company’s ongoing merger with Essential Utilities is expected to close in the first quarter of 2027, pending regulatory approvals. The combined entity will have a pro‑forma market capitalization of about $40 billion and an enterprise value of roughly $63 billion, and is expected to be accretive to earnings in the first year after closing. The merger will combine complementary regulated utilities, expand the customer base, and create significant growth potential for shareholders.
Authorized revenue from general rate cases totaled $232 million and from infrastructure surcharges $43 million, supporting the company’s revenue growth. While operating expenses increased, the company remains focused on infrastructure investment, addressing challenges such as rising operating costs, higher depreciation, and financing expenses. The company’s capital investment plan underscores its commitment to renewal, resiliency, water quality, technology, and growth projects.
American Water declared a quarterly cash dividend of $0.8275 per share, payable on December 2 2025.
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